Co-operative Bank has posted its strongest half-year performance yet, recording a Ksh23.1 billion profit before tax for the six months to June 2026.
The figure represents a 17.3 per cent increase from the Ksh19.7 billion reported during the same period in 2025. Profit after tax also rose by 28 per cent to Ksh18 billion, up from Ksh14.1 billion a year earlier.
The bank’s latest results show growth across several parts of the business, with total assets increasing by 7.1 per cent to Ksh869.5 billion.
Customer deposits grew by 11.2 per cent to Ksh623.2 billion, while net loans and advances rose by 18.1 per cent to Ksh462.2 billion.
The bank also recorded growth in its main income streams. Net interest income increased by 13 per cent to Ksh33.2 billion, while operating income rose by 12.5 per cent to Ksh48.9 billion.
Loan quality improves
Despite the growth in lending, Co-op Bank reported an improvement in the quality of its loan book.
The group’s non-performing loan ratio dropped to 13.9 per cent from 17.2 per cent in the first half of 2025. Its IFRS coverage also improved from 69.9 per cent to 80.7 per cent, while the cost of risk fell from 2.4 per cent to 1.8 per cent.
The bank’s shareholders’ funds increased by 9.4 per cent to Ksh171 billion, while borrowed funds fell by 11.4 per cent to Ksh58.2 billion.
Digital banking continues to grow
Co-op Bank said more than 90 per cent of customer transactions are now processed through alternative channels, reflecting the growing use of digital and agency banking.
The bank has 16,105 Co-op Kwa Jirani agents, 609 ATMs and Cash Deposit Machines, as well as 223 branches across Kenya, South Sudan and Kingdom Bank.
Agency banking also recorded growth, with deposits generated through agents increasing by 8.7 per cent to Ksh92.5 billion.
The bank’s digital lending business remained active during the period. E-Credit disbursements reached Ksh40.4 billion in the first half of the year, while cumulative MCo-op Cash customers rose to 15.6 million.
Co-op Bank said 268,604 small and medium-sized businesses had been onboarded onto its tailored MSME packages, with another 71,298 businesses receiving capacity-building and training support.
Bank expands support for youth
The lender is also putting more focus on young customers, with more than Ksh27 billion disbursed to youth during the first half of 2026.
According to the bank, the funding supported more than 500,000 young people involved in entrepreneurship and business expansion.
More than 150,000 young people also took part in financial literacy and empowerment programmes during the period.
The bank said it is positioning its youth banking business to serve more than 10 million young customers in the medium term.
Its subsidiaries also contributed to the overall performance. Kingdom Bank recorded Ksh873 million in profit before tax, up from Ksh491.1 million in the previous period, while Co-optrust Investment Services posted Ksh640.5 million, representing a 77.5 per cent increase.
The strong half-year results come as Co-op Bank continues implementing its 2025-2029 Good to Great Strategy and the Soaring Eagle transformation agenda.
The bank said it would continue focusing on digital banking, lending, financial inclusion and customer service as it seeks to sustain the growth recorded in the first half of the year.